China’s Three Top Cities Announce Tax Breaks to Revive Property Market
- THE CHINA NOW
- Nov 21, 2024
- 3 min read
Summary
Beijing, Shanghai, and Shenzhen introduced tax breaks to stimulate home sales and stabilize their struggling property markets.
Measures include exemptions from value-added tax on properties held for more than two years and a raised threshold for deed taxes.
These efforts aim to address a four-year slump in China's property sector, a key contributor to its economy.
In an effort to counteract a prolonged downturn in China’s property sector, Beijing, Shanghai, and Shenzhen have rolled out a series of tax breaks aimed at boosting home sales. Starting December 1, properties held for more than two years will no longer incur a value-added tax (VAT) upon resale, a significant reduction from the previous five-year requirement. This measure is expected to lower costs for sellers and encourage more property transactions.
